Navigating the Economic Landscape

ARS Fight Continues: Another Round with Oppenheimer

Posted by Larry Doyle on June 18, 2010 11:06 AM |

The fight for justice for auction-rate securities investors has many rounds yet to go. I remain determined to fight, cover this story, and highlight the ongoing fraud and injustice perpetrated on ARS investors everywhere until the last punch has been thrown. On that note, let’s get ready to rumble!

I received a recent message from an individual in Florida. The fact that the financial fraud in this specific case and the ARS market in totality remain largely unknown to the American public is an indictment of Wall Street, the financial industry at large, our financial regulators, the broad financial media, Congress, and ultimately our nation. Let’s strap it back on, and go after those individuals and institutions in our country who have failed to protect our brothers and sisters who were defrauded in the distribution of ARS.

In this corner is Sense on Cents. In that corner are the fraudsters and those who have aided and abetted the fraud or neglected to protect investors. Today’s specific opponent is once again the crowd at Oppenheimer and Company. Allow me to share with you the email I recently received:

Dear Larry,

I just read the article on the website auctionratepreferreds.org that either you wrote or that quoted you regarding ARS and Oppenheimer & Co. I am in complete and total agreement with you regarding that matter. You mentioned and quoted a group of NY investors who are in the situation of not having their money back and being disappointed with the settlement arrived at by Mr. Cuomo. I am a Florida resident, and am in the exact same situation. I would love to join their group or at least communicate with them to share my personal experiences.

My situation is even more dismal because the AG office of the state of FL claims that they have no money or in-house attorneys to sue Oppenheimer (or any brokerage house), so I don’t even have an AG to fight for me. I am faced with having to hire a private attorney to file an arbitration claim against that firm. All decent attorneys will not take it on a fee arragement of hourly rates, but all want a percentage of the recovery. If I should prevail (and my case is very strong because it was quite clear from the very beginning that the money my wife and I turned over to our broker at Oppenheimer was from the sale of our house and was clearly designated for the purchase of our new condo which was under construction at the time we sold our home), we might not get back any damages or legal fees and we would be forced to give principal to the attorney. That really adds insult to injury. I cannot seem to get anyone in our state government to feel any compulsion to attack Oppenheimer.

Please get back to me with the names, phone numbers, or email addresses of anyone who might be in a similar situation as me with regard to Oppenheimer. I am a retired physician and feel totally abused by a financial industry that really does not care about their clients. If I treated my patients that way, I would have received many medical malpractice law suits against me. Oppeheimer surely needs to be exposed.

Thanks.

There is strength in numbers, in knowledge, in determination, and in the blogosphere. I welcome being a conduit for this investor and any other investor to the group mentioned in this individual’s letter. Others can help by sharing this post with friends and colleagues.

For investors in Florida specifically, I hope you will take to heart the point highlighted by this investor as to the inability of the Florida Attorney General’s office to protect you.